StudentPlatinum.com has created a useful resource for students and parents who are wondering what they can do to improve their credit. The primary benefit of improving your credit is that you can secure lower rates and more favorable terms on loan and credit cards. Get more information on how to Improve Your Credit Score at:
http://www.studentplatinum.com/improve-credit-score/
So, your child wants to go to that private University costing $45,000 per year and you’re wondering how on earth you’re going to pay for it.
They have worked hard thru High School, received a merit scholarship, have taken their PSAT, SAT, & ACT exams to prepare themselves and are excited about this new chapter in their young adult lives.
You on the other hand are a little less excited, and not because empty nest syndrome has set in prematurely. How am I going to pay for this you are thinking to yourself? It is the million dollar question. I just hope the million dollar question doesn’t cost me a million when my son is of age in 18 years.
Here are a few things to consider. FFELP Parent Plus loans are currently fixed at 8.5% which is really high in relation to private student loans, which many can get in the mid 6% range with good credit these days. The fed funds rate has dropped precipitously over the past several months which have spurred these lower private interest rates and has swung the pendulum in favor of private loans for many.
Both loans can be repaid after the student graduates, which are nice benefits, but you are only delaying the inevitable while interest continues to capitalize. If you can at least afford to make interest only payments while the student is in school it would certainly be in your best interest.
Another thing parents often ask me is who is responsible for the payment on these loans when the student graduates? The parent plus loan is linked to the parent’s social security number, so the parent is responsible for that one. The private student loans are generally in the students name with the parent listed as a co-signer. This would be the student’s responsibility and after 36-48 months of on-time payments you can get your named removed as a co-signer.
The parent plus loan also holds a tax benefit. You can write off the interest provided you do not earn more than $70,000 if you are single and $140,000 for joint filing. On a side note many parents with a joint income exceeding $140K are actually looking at home equity loans. Interest rates are so low on equity loans currently and they can write off the interest at the end of the year.
As you can see you have a few options, but only you know what is right for you. Happy spending.
Student Loan Network serves hundreds of thousands of students from more than 6,000 colleges across the United States . However, we do see some states and colleges where we get more applications than others. If you are interested, here is a list of the popular states where we are making loans.
StudentPlatinum.com has created a useful guide for those of us who don’t understand as much as they should about their credit. More importantly, the site guides you through the steps you will need to improve your credit score to insure you qualify for student loans. Visit:
http://www.studentplatinum.com/improve-credit-score/
Remember, when applying for private student loans, a qualified cosigner helps you to get approved with the best rates and lowest fees. And always maximize scholarships and federal student loans first!
The Financial Aid Podcast is hosting a select group of financial aid, media and industry leaders to participate in a live podcast addressing the recent news regarding the credit crunch and student loans. Learn how you, as a student, parent, or family member can pay for college in 2008. Student questions such as the following will be addressed:
* What is the current status of the student lending market? Will loans be available to me?
* I keep hearing that loans might not be available from some lenders - what does that mean for my Stafford loan?
* What is the government doing - or what should they do - to help make paying for college a reality for most students?
* Where can I find scholarships, grants and other financial assistance?
* What do “tighter credit requirements” mean to me?
Show will air live April 9 at Noon EST.
Register Now to ask your questions in advance!
A helpful article on College affordability - How are you going to pay for it all??? Please take some time to 1) read it and 2) Digg it:
Digg: Choosing a College and How to Pay for it
We will see what kind of visibility we can get with your help!
Two things people do not always realize:
1) You must complete the Free Application for Federal Student Aid (FAFSA) in order to qualify for federal student aid, including the Stafford Loan. There is still time left so get it done online at www.fafsa.ed.gov.
2) You are not done once you complete the FAFSA. You then actually need to apply for a Stafford Loan - and any other aid you are interested in. Talk with your financial aid officer, seek other resources and apply as early as possible.
To find College Scholarships, visit www.StudentScholarshipSearch.com
If you are a high school senior and are planning to go to college in the fall, the first step in the financial aid application process is the FAFSA. What is a FAFSA? It is the Free Application for Federal Student Aid. What is it for? You have to complete this government form to qualify for federal student aid, including Pell Grants, Stafford Loans and often college administered scholarships and grants.
For help and advice visit: FAFSAOnline.com
Students who don’t want to complete the FAFSA often go right to private student loans to help cover their expenses. These are often more expensive than federal loans but may be easier to get if you have good credit.
The Student Loan Network offers a unique option to customers; choose from two different private student loan options.
The first, a standard “school certified” private college student loan has somewhat lower fees and rates. The down side is that the school has to certify the loan (verify that you are a student and the cost of education less other aid) which causes delays in processing and disbursement. For school certified loans, the check is sent to the school.
The second option is a “direct to consumer” private student loan which comes with competitive rates - generally higher than certified loans - but will fund direct to the student in as little as five days from application completion.
Choose for yourself at:
How does that famous Forest Gump quote go….oh ya, “Life’s like a box of chocolates, you never know what you’re going to get.” And while I certainly agree with that life is unpredictable sentiment; buying chocolates doesn’t have to be unpredictable, right? Think about how ridiculous that is for a minute. You work hard for your money. If you want to take a chance play Monopoly or buy a scratch ticket. If you want chocolate visit my friend Christie at Godiva and she’ll hook you up (by that I mean she’ll actually help you pick out what you want). Be responsible with those Benjamin’s and devise a game plan. Create a budget.
Have you ever stopped and wondered aloud, where did it all go; what did I spend my money on? Assuming you don’t have amnesia, or a lack of short term memory like Drew Barrymore’s character Lucy in 50 First Dates, I suspect it just comes down to you being a little too wreck loose with your greenback. You need to budget yourself. One way I found helpful (and depressing) was chronicling my spending for just one week. I simply wrote down everything I spent my disposal income on for that particular week. I was startled to learn that my Starbucks coffees, lunches, People Magazine, one night out with my friends, and buying a new shirt on sale ($15) totaled a jaw dropping $95! Even if I left the shirt out I was still sitting at $80 bucks! I began to ask myself if I really needed to spend that much money each week.
I then decided to make a conscious decision to save, instead of spend, for one year. I stopped getting my $4 coffee’s in the morning; I brought my lunch to work, and got together with friends at home instead of at a club in
So let the Forest Gump’s of the world continue to play Russian roulette with their box of chocolates; wondering what they will get. Your strategy allows for a more predictable and profitable outcome. So sit back and enjoy each predictable chocolate morsel. It sure tastes good knowing exactly what you’re going to get.
